investors and analysts day december 2016 · energy transition and digital transformation 10. 11...
TRANSCRIPT
INVESTORS AND ANALYSTS DAY
BRUSSELSFRIDAY, 2ND DECEMBER 2016
AGENDA
8.30 am - 10.30 am VINCI Energies presentation
10.30 am – 11.00 am Break
11.00 am – 11.45 am Q&A
11.45 am – 12.00 am Presentation of the visit
Lunch
1.15 pm – 2.00 pm Shuttle to GSK’s site
2.00 pm – 3.30 pm Visit
3.30 pm Departure – shuttle to the Thalys station & taxis to the airport
3
VIDEO
VINCIEnergiesshare
VINCI ENERGIES WITHIN VINCISHARE EVOLUTION
5
2010 2015
VINCI Energies Revenue evolution
within VINCI
VINCI Energies EBIT evolution within VINCI
€33.4 bn€38.5 bn
€3.8 bn€3.4 bn
21 %26 %
15 %11 %
+15 %
+9 %
+43 %
+47 %
2010 2015
VINCI ENERGIES WITHIN VINCI TODAY
6
2015 Group Revenue : €38.5 bn
2015 Group EBIT : €3.8 bn
2015 Group Free Cash Flow : €3.0bn
2015 Group Headcount : 185,500
2015 Group Capital employed : €30.1 bn
VINCIEnergies VINCIexcludingVINCIEnergies
VINCIEnergiesshare
VINCI ENERGIES WITHIN VINCI’S CONTRACTING BUSINESSSHARE EVOLUTION
7
2010 2015
VINCI Energies Revenue evolution
within the Contracting
VINCI Energies EBIT evolution within the
Contracting
€28.2 bn€32.6 bn
€1.1 bn€1.3 bn
25 %31 %
52 %31 %
+16 %
-12 %
+43 %
+47 %
2010 2015
VINCI ENERGIES WITHIN VINCI’S CONTRACTING BUSINESS
8
2015 Contracting Revenue : €32.6 bn
2015 Contracting EBIT : €1.1 bn
2015 Contracting Headcount : 171,800
2015 Contracting Free Cash Flow : €1.1 bn
2015 Contracting Capital employed : €3.3 bn
VINCIEnergies Eurovia &VINCIConstruction
Yves MeigniéChairman and CEO of VINCI Energies
Hervé AdamDeputy Managing Director and General Manager of VINCI Energies France
Thierry MirvilleDeputy Managing Director and Chief Financial Officer of VINCI Energies
Bernard LatourDeputy Managing Director and General Manager of VINCI Energies Europe
Arnaud GrisonDeputy Managing Director and General Manager of VINCI Energies International & Systems
Patrick LebrunDeputy Managing Director and General Secretary of VINCI Energies
EXECUTIVE COMMITEE - TEAM
9
WHAT IS VINCI ENERGIES?
Originally, VINCI Energies was an electrical installer and service provider
Today, VINCI Energies is a multi-technical specialist that covers the entire value chain
Design > Implementation > Maintenance > Operation
and operates increasingly as a systems integrator to support its customers as
they address two major shifts:
energy transition and digital transformation10
11
BUSINESS LINES
Industry Buildings ICT
(Information and Communication Technologies)
Infrastructure
Energy Transport
€2,664 m26%
Group revenue
€2,875 m28%
Group revenue
€2,990 m29%
Group revenue
€1,651 m17%
Group revenue
12
KEY FIGURES – REVENUE (€ m)
13
KEY FIGURES – OPERATING PROFIT (€ m)
14
KEY FIGURES – NET PROFIT & CASH FLOW (€ m)
With 65,400 employees worldwide, we support our customers in 51 countries across all five continents.
We generate half of our revenue outside France. 15
A GLOBAL PRESENCE
VINCI ENERGIES: building positions in promising markets
ENERGY INFRASTRUCTURETRENDS
2040Energy consumption +40%
Transmission and distribution gridsmore than 40 years old
Wind & solar photovoltaic capacity growing:
5% of the world's power generation x10 in the last 10 years
+ 100 GW in 2015 (≈ 60 EPR)
Decentralisation of generation
17
GROWING IMPACT OF DIGITAL
ENERGY INFRASTRUCTUREOUR OPPORTUNITIES
18
Electricity Storage
Smart gridsMicro-grids
Electricmobility
Security of supply & grids
TRANSPORT INFRASTRUCTURETRENDS
Population more urban66% of world population in 2050
(54% today)
Changing uses
Increasing requirements
More mobilityShared vehicles uses increasing strongly
DIGITAL: KEY DRIVER
19
TRANSPORT INFRASTRUCTUREOUR OPPORTUNITIES
20
Electricmobility
Self-driving vehicles
Public transport
SafeinfrastructureIntermodal
PassengerInformation & services
INDUSTRYTRENDS
2006 – 2015Industrial production + 30%
Increasing need of factory productivity
+25% robotsin factories over 5 years
Average robot density /10,000 employees worldwide: 69Germany: 301
DIGITAL TRANSFORMATION: INDUSTRY 4.0
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INDUSTRYOUR OPPORTUNITIES
22
Internet of Things TraceabilityVirtual
Reality
Aeronautic LogisticsFood &Beverage Life Sciences
Energy efficiency
Building obsolescence
70% of France's existing office space
> 40 years old
Energy performance
Buildings in Europe:
46% of energy consumption
19% of CO2 of emissions
Digital workplace
BUILDINGSTRENDS
DIGITAL TRANSFORMATION
23
BUILDINGSOUR OPPORTUNITIES
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Comfort & Digital
Buildings
Workplace transformation
Renovation market
(obsolescence)
Building Information Modeling
Security and protection
Facilities management
offering B2B2C
2016 - 2020More and more data
Increasing need of bandwidth and IT infra
Cybersecurity market: +35%
Cloud market: +25%
IoT market x2 (85% B2B)50 billion of connected objects in 2020
ICTTRENDS
DIGITAL TRANSFORMATION
25
ICTOUR OPPORTUNITIES
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Interaction IT departments & business lines
Cybersecurity
Big Data
Telecom infrastructure 5G, THD, IoT
New infrastructurehybrid cloud
Industry Buildings ICT
27
BUSINESS LINES
Infrastructure
Power generation, power transmission and distribution
Public lighting
Customers: utilities, regional and local authorities, industries
INFRASTRUCTURE ENERGY
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System components (electrical, communication, fire protection systems) for complex
transport infrastructure (rail, road, airports, etc)
Customers: concessions companies, regional and local authorities, public- and private-
sector urban transport companies
INFRASTRUCTURETRANSPORT
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INFRASTRUCTURE IPP – SENEGAL POWER GENERATION
€20 million - 20 yearsTurnkey construction and maintenance of a 33 MW photovoltaic farm
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31
INFRASTRUCTURE GCCIA – MIDDLE EAST TRANSMISSION
€100 million - 4 yearsInterconnection grids, GCC countries
Long-term maintenance contract for high-voltage grid and substations
32
INFRASTRUCTURE EnBW – GERMANY DISTRIBUTION
€75 millionVery long-term partnership in medium- and low-voltage powerlines
Works and maintenance
33
INFRASTRUCTURE CREM GRENOBLE – FRANCE PUBLIC LIGHTING
€18 million - 8 years56% savings
Energy performance contract
34
INFRASTRUCTURE VINCI AUTOROUTES A89 – FRANCE TRANSPORT
€54 million - 49.5 km of motorway3 tunnels – 5.4 km of twin-tube tunnel
All technical and safety installation work
Electrical energy systems, industrial monitoring and control, heating ventilation airconditioning.
Customers: companies operating in all major industries and sectors (oil and gas,chemicals, automotive, aerospace, food processing…)
INDUSTRY
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€55 millionSince 2012
Turnkey handling services for final assembly plants
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INDUSTRY MERCEDES – FRANCE / ALLEMAGNE
€2 million6 FedEx Express sites in Europe
Integration of 7 weight and volume measuring machines into the sorting system
37
INDUSTRYFEDEX – EUROPE
TOTAL E&P ANGOLA / €100 million over 10 yearsBP ANGOLA / €50 million over 5 years
4 FPSO maintenance contracts
38
INDUSTRYTOTAL & BP – ANGOLA
Collaboration since 198038 production sites worldwide
Innovative automation solutions
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INDUSTRY MASTERFOODS – NETHERLANDS + WORLDWIDE
€30 million over 5 years2 factories
Maintenance, 100 technicians
40
INDUSTRY AIRBUS – FRANCE / SPAIN
BUILDINGS
High and low voltage, communication networks, heating and ventilation, building automation systems, security systems, fire detection and protection
Installation, technical maintenance and building services
All types of buildings for all types of customers (public and private)
41
€30 million105,000 m²
Technical packages (high/low voltage, ICT, air conditioning, plumbing)
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BUILDINGSMOHAMMED VI POLYTECHNIC UNIVERSITY IN MOROCCO
€114 million – construction€75 million – operation and maintenance over 25 years
58,000 m²
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BUILDINGS CAMPUS LE MIRAIL - TOULOUSEPPP VINCI CONSTRUCTION & VINCI ENERGIES
€150 million over 7 years1400 branches - 35 office buildings
Facility management
44
BUILDINGSBNP PARIBAS BRANCHES – FRANCE / BELGIUM
€100 million over 5 years55 schools in 4 countries
Multi-technical maintenance
45
BUILDINGSUS ARMY SCHOOLS - EUROPE
€2 million since January 201512 BUs in France, 9 BUs outside France
Installation of medical imaging equipment and monitoring systems
46
BUILDINGSGE HEALTHCARE - EUROPE
Telecom infrastructure (fixed-line and mobile) and IT
Enterprise networks – digital workspaces – datacenters and cloud solutions –business applications and data analytics – cybersecurity
Customers: operators and service providers, regional and local authorities, banks,insurance, manufacturers, retailers etc.
ICT
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€20 million over 3 years24,000 access points delivering voice
and data services, 4G points, Wi-Fi
48
ICTVODAFONE - GERMANY
€124 million over 4 years - Design & Build6,000 km of very high speed optical fibre
140,000 homes connected
49
ICTFTTH IN MOSELLE – FRANCE
€8 millionDesign and implementation of private cloud as part of a pay-per-use arrangement
Platform management services for 4 years
50
ICTSPAR – AUSTRIA
€1 millionCybersecurity : all sites worldwide
Responsible for operating the enhanced security system
51
ICTEDHEC – FRANCE / UNITED KINGDOM / SINGAPORE
€1 millionCreation and maintenance of a Big Data environment:
medical data collection, storage, processing
52
ICTGRONINGEN A.M.C. - NETHERLANDS
Consistency of expertise – electrical – heating ventilation air conditioning –
automation – IT
Consistency for clients:
– HV infrastructure of industrial clients
– FM + process maintenance for industrial clients
– Building + industrial process expertise for EPC (ex GSK)
– Supervision system for city infrastructure
And ICT everywhere (increasing with Smart …)
CONSISTENCY AND SYNERGIES BETWEEN OUR BUSINESS LINES
53
INNOVATIONAT THE HEART OF VINCI ENERGIES
BIM FM Lab with Thales: BIM d’Or (Smart
building Lab)
Building of the future showcase (with
Cisco / Philips)
Factory Lab – Industry of the future (with
CEA, Arts & Métiers, PSA, Dassault, Safran,
DCNS)
The Camp, Starterbootcamp, etc.
VINCI ENERGIESPARTICIPATING IN VARIOUS ECOSYSTEMS
55
INNOVATION AT THE HEARTOF VINCI ENERGIES
INERBIZ: Fund providing investment and managerial support for innovative young
companies
Already 3 equity investments:
HAL24K (Netherlands): Big data platform – Infrastructure
Investment : €1 m for 13% equity
PYSAE (France): Information passenger system – Public transport
Investment : €0.7 m for 30% equity
AUGMENSYS (Germany): Augmented reality – Industry
Investment : €0.5 m for 10% equity
56
VIDEO
A STRONG AND FLEXIBLE ORGANISATION
VINCI ENERGIES DECENTRALIZED ORGANISATION
A network of 1600 Business Units (BU),
autonomous, market segmented, close and glued to their clients,
a flair for customer service
Each BU with a P&L under the clear responsibility of a BU Manager, profit incentivized,
working in synergies with other BUs via networks of expertise, markets or clients
Around 70% of the BUs under one of the 5 global brands
30% under local and specialized brands
Organised in a clear management organisation
59
VINCI Energies SA
VINCI Energies France
VINCI Energies Europe
VINCI Energies Inter. & Systems
19 Management Poles
11 Management Poles
7 Management Poles
820 Business Units 580 Business Units 200 Business Units
A FLEXIBLE ORGANISATION WITH MANAGEMENTDELEGATIONS AT THE CENTER OF THE NETWORK
3 Divisions
37 Management Poles
1,600 Business Units
Strong reactivity, efficient alignment of strategy and decisions. Flexibility allowing : Quick integration of external growth in the network and the
organizationEasy evolution of organization to follow growth and market
60
STRONG MANAGEMENT VALUES FOR EFFICIENCYCONTROL AND PERFORMANCE
Entrepreneurial spirit
Shared values and code of conduct:
Trust, empowerment, autonomy and responsibility
Solidarity, generosity, simplicity, networking
Management transparency and efficiency is rule #1
61
A common Management and monitoring system (QUARTZ) for all entities worldwide to
follow and control projects, financial indicators and P&L
Embedded in a few ERPs, converging towards a unique one
Shared strategic project:
Yearly process identical in all BUs
A unique P&L vision and set of financial indicators for all BUs worldwide
A detailed Internal Control and Risk Management system, worldwide application,
yearly conformity campaigns
SUPPORTED BY A STRONG AND HOMOGENEOUS MANAGEMENT SYSTEM
62
Supported by strong training sessions through VINCI Energies Academy
All management principles, and tools deployed
through training at the various VINCI Energies
Academy units worldwide
For all layers of management
Regular seminars for directors and BU Managers to
update and keep values and principles aligned
Around 12,000 collaborators taking part in VINCI
Energies Academy courses each year
63
OUR NUMBERS AND TEAMS
DIVERSIFIED REVENUEGUARANTEE OF RESILIENCE
2015 Revenue by region(€ m)
65
DIVERSIFIED REVENUEGUARANTEE OF RESILIENCERevenue per type of clients
66
DIVERSIFIED REVENUEGUARANTEE OF RESILIENCE
67
DIVERSIFIED REVENUEMANUFACTURING COMPANIES
33% MANUFACTORING COMPANIES
68
13%
12%
12%
10%9%7%
7%
5%
5%
5%
4%3%
2%
FOCUS ON PHARMACEUTICAL /LIFE SCIENCE SEGMENT
Growing market: +9% in 2015 New biotech medicines Increasing volume of generic medicines for emerging countries
€205 million revenue in 2015 for VINCI Energies
Projects in industrial processes, buildings and facilities management, fireprotection and communication for:
New investments (production, buildings) Plant modernisation Maintenance of facilities
69
100,000 ACTIVE CLIENTS IN 2015
DIVERSIFIED REVENUEGUARANTEE OF RESILIENCE
70
DIVERSIFIED REVENUEGUARANTEE OF RESILIENCE
TOP CLIENT3% of Group Revenue
71
DIVERSIFIED REVENUEGUARANTEE OF RESILIENCE
TOP 2020% of Group Revenue
72
DIVERSIFIED REVENUEGUARANTEE OF RESILIENCE
CUSTOMER ACTIVE FOR MORE THAN 5 YEARS80% of Group Revenue
73
DIVERSIFIED REVENUEGUARANTEE OF RESILIENCE
230,000 ORDERS BOOKED IN 2015AVERAGE VALUE OF €45,000 EACH
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DIVERSIFIED REVENUEGUARANTEE OF RESILIENCE
2015ORDERS > €5 MILLION
8% of Group Orders (in €)
75
DIVERSIFIED REVENUEGUARANTEE OF RESILIENCE
2015VALUE OF LESS THAN €100,000
70% of Group Orders (in €)
76
DIVERSIFIED REVENUEGUARANTEE OF RESILIENCE
77
Maintenance and FM revenue:- Under structured maintenance and FM contracts- Excluding recurrent jobs within frame/contracting agreements
MARKET POSITIONS
VINCI Energies’ market share ≈ 13%“Majors” account for less than 50% of the overall market ð room for consolidation in some market segments (ICT, automation, etc.)
MARKET POSITIONSMARKET LEADER IN FRANCE
In€billion
79
Market share < 3% ðroom for expansion in highly fragmented marketsAmong the three market leaders in Germany, Switzerland, Belgium, Netherlands, Portugal and RomaniaStrong specialised positions in: Spain: energy infrastr. Poland: telecom infrastr.
Austria: ICT UK: industry and ICT Czech Rep: energy infrastr.
MARKET POSITIONSLEADING PLAYER IN EUROPE
80
Morocco (€200m): market leader, covering all VINCI Energies’ expertise
Western Africa (€225m): oil & gas and energy infrastructure; aiming to apply all VINCIEnergies’ expertise through organic growth and networking
Middle East (€98m): oil & gas, energy infrastructure
Brazil (€111m): energy infrastructure, industry; ready to expand when country recovers
New Zealand (€128m): market leader, strong in energy infrastructure; developing newofferings
Australia (€94m): significant player in Queensland in energy infrastructure andindustry
Indonesia (€44m): oil & gas activity replaced by booming infrastructure and industrybusiness
MARKET POSITIONSINCREASING FOOTPRINT OUTSIDE EUROPE
81
Due to the increasing technicality of our businesses and the increasing role played
by services in many projects, the positions of the various players within the value
chain are tending to overlap in competition with traditional systems integrators,
but also:
In ICT with Accenture, Atos, Orange Business Services, etc.
In industry with Schneider, Siemens, SAP, etc.
In facility management with Veolia, Sodexo, ISS, etc.
MARKET POSITIONSNEW COMPETITIVE LANDSCAPE
82
TRACK RECORD OF PROFITABLE GROWTHEVOLUTION OF REVENUE AND OPERATING PROFIT
83
2015 CONSOLIDATED INCOME STATEMENT1/2
84
In€million
2015 CONSOLIDATED INCOME STATEMENT2/2 In€million
85
A STRONG CASH FLOW In€million
86
HEALTHY BALANCE SHEET
87
In€million
One of VINCI Energies' fundamental strengths
A key growth driver, but not the only one
In the last 10 years:
180 transactions completed
Representing combined revenue of €6.6 billion, comprising:
€2.5 billion in France
€4.1 billion outside France
Main acquisitions: Cegelec, Imtech ICT, GA Gruppe, Faceo, Etavis, Electrix, APX
VINCI Energies overall EBIT margin increased during the period
ACQUISITIONSA TRACK RECORD THAT SPEAKS FOR ITSELF
88
Culture and experience broadly shared by VINCI Energies' key executives
A constant flow of opportunities, supported by the Group's high profile
Clearly defined priorities
A rigorous and formalised process of analysis, selection and valuation
Long-standing experience and expertise regarding relations with vendors (of all types:
individuals, groups and funds) and in negotiating acquisition contracts
Acquisition process managed not by a centralised M&A department but by operational
management in charge of the post-acquisition phase, ensuring full accountability
ACQUISITIONSA PROVEN APPROACH
89
A well defined and systematic integration process
A strong, systematic integration process for deploying the Group’s values, training
methods and systems: QUARTZ – ERP – RISK MANUAL
Integration into all of VINCI Energies’ relevant networks (purchasing, best practice,
commercial, etc.)
ACQUISITIONS
90
The average multiple of our bolt-on acquisitions in the last 10 years is 7 times EBIT
in enterprise value (between 5 and 8 times)
Groups comparable with VINCI Energies are valued at multiples of over 10
In addition to embedding the Group's fundamentals in an acquired company, synergies
arise from connecting it to the Group's multiple networks
These synergies are particularly pronounced in our network brands, where growth
through acquisition makes particularly good sense
ACQUISITIONSA STRATEGIC, VALUE-CREATING GROWTH DRIVER
91
A simple financial model
Assuming current margins, taxes and VINCI dividend pay-out
Assuming that companies are purchased with an EBIT margin 100-200bp below
that of VINCI Energies, with an average multiple of 7
Available free cash flow enables us to finance acquisitions representing
around 5% of the revenue
ACQUISITIONSA QUASI-ORGANIC GROWTH MODEL
92
December 2015
HUMAN RESOURCES: TEAMS LOCATIONS
93
Total workforce: 65,400 employees (as at Dec. 31, 2015)Temporary staff (average FTE 2015): 6,450
6,100 people hired on permanent contracts in 2015 (of whom almost 50% under 30)
AN INCREASINGLY WELL QUALIFIED WORKFORCE
94
HEALTH & SAFETY
95
1.1 million hours of working time spent on training in 2015
45,000 employees took part in at least one training session in 2015including 12,000 participating in the VINCI Energies Academy
An investment totalling more than €100 million
Crucial for keeping our people's skills up to date and developing them
Increasing use of various forms of digital learning
MAJOR INVESTMENTIN TRAINING
96
STRATEGYCONCLUSION
THANK YOUFOR YOUR ATTENTION